The recent action in the gold market is sending out a big warning signal that investors need to heed, veteran industry insider Jack Bouroudjian said Thursday.
"It may have started out as a reinflation trade, but right now it is turning into that flight to quality and flight to safety. It is one of those things that is more than likely going to stop any kind of a move in equities," the co-founder and director of UCX said in an interview with CNBC's "Power Lunch."
In fact, despite recent stock market highs, the breadth, volume and data are horrible, said Bouroudjian, also a CNBC contributor.
"Everything is leading us to believe that we're not going to see a big pop in earnings," he explained. "In fact, this earnings recession we've been going through is going to maintain itself, and if that's the case we're talking about a market that is too rich."
Therefore, he believes equities will move lower.
"We are one or two headlines away from seeing this market readjust, and you can see 5 percent loss in a week's time," he predicted.
Bouroudjian's comments come on the heels of billionaire investor George Soros' bearish bets. Soros Fund Management, which manages around $30 billion for the Soros family, sold stocks and bought gold and shares in gold miners, amid a "gloomier" view of the global economic outlook and the potential for large market moves, The Wall Street Journal reported Wednesday.
Trader Jim Iuorio, managing director of TJM Institutional Services and CNBC contributor, likes gold and stocks.
Because "the world is awash in central bank money," he thinks equities belong on the "where do you put your money" list, although they are not as safe as gold, bonds and the U.S. dollar.
"Right now, the next month, the next two months, stocks seem fine to me because of nothing else. I still say that there are ominous clouds that are gathering, I just say they are way in the distance," he told "Power Lunch."
Disclosures: Iuorio and Bouroudjian have long exposure to gold.